IAG airline group announces Airbus orders

International Airlines Group has announced firm orders and options for up to 220 Airbus aircraft. Source: AAP

INTERNATIONAL Airlines Group (IAG), parent of British Airways and Iberia, has announced firm orders and options for up to 220 Airbus A320 family shorthaul aircraft.

The London-based company said up to 120 of the orders were for Spanish subsidiary airline Vueling, enabling it to "replace some of its existing A320 fleet and expand its business".

The Vueling agreement is made up of 62 firm orders -- 30 A320ceo and 32 A320neo -- to be delivered between 2015 and 2020, and 58 options.

IAG has also secured 100 options for the A320neo, the family's latest model, which could be used by British Airways, Iberia or Vueling.

"Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity," explained IAG chief executive, Willie Walsh.

IAG said it had negotiated "a very substantial discount" from the list prices, which are $US81.8 million ($A90.31 million) for the A320ceo and $US92.0 million for the A320neo.

Its shareholders will need to approve the firm orders at a meeting later this year.

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